The Finance Minister Shri Arun Jaitly has presented the Union Budget 2017 in Parliament. The Budget that is usually presented on February 28 annually was rescheduled this year and the Railway Budget that is presented earlier than the Union Budget each year, will be introduced the same day as the main Budget in 2017. The Finance Minister has proposed the following measures:

Extend the provisions of Section 115BBDA of the Income Tax Act which provides for levy of tax at the rate of 10 per cent on dividend income exceeding Rs 10 lakh, to all resident persons except domestic Companies or trust or institution or fund registered under section 12AA or referred to in section 10(23C). Presently, these provisions are applicable only to the individuals, Hindu undivided family (HUF) and firms.

Income tax for small Companies with Annual Turnover of up to Rupees 50 Crore will be reduced to 25% from 30% earlier. Further, Start-ups will benefit from the lower tax and Start-ups will have to pay tax on profits for three out of seven years.

Cash transaction above Rupees 3 Lakh will not be allowed. This come after the demonetisation and various other measures by the Government to curb black money in the Country.

Service charges levied on booking e-rail tickets through the Indian Railway Catering and Tourism Corporation (IRCTC) will be withdrawn.

In case of transfer of unquoted equity shares, where the fair market value, determined in the prescribed manner is less than the consideration received, such fair market value shall be the deemed value of consideration for the purpose of computation of capital gains.

Introduction of a new provision in the Income-tax Act to provide for tax deduction at source at the rate of 5 per cent by an individual or HUF, other than those whose books of account are required to be audited, while making payment of rent of an amount exceeding Rs 50,000 per month.

The audit limit for business entities opting for presumptive scheme to be increased from Rs.1 crore to Rs.2 crore. Further, Individuals and HUFs not required to keep books of accounts if their turnover is up to Rs.25 lakhs or income is upto Rs.2.5 lakhs.

The time limit for revising atax return reduced to 12 months. Also time limit for completion of scrutiny will be brought down to 12 months from Assessment Year 2019-20 onwards.

Professionals in presumptive scheme to pay advance tax only in one instalment in March instead of four.

Investment in Category 1 and 2 foreign portfolio investors registered with SEBI to be exempted from provisions of indirect transfer.